Price T Rowe Group (TROW) risk factors, FY2025 10-K

Price T Rowe Group's FY2025 10-K, filed Feb 13, 2026, lists 35 risk factors. Against the prior year's 37: 2 new, 4 dropped, 14 substantially reworded.

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Risk factors listed
351 groups
New this year
2vs 37 last year
Dropped
4since the prior 10-K
Substantially reworded
14of those kept
Section length
10k wordsItem 1A

What the changes say

  • Technology integration and generative AI demands present new operational and regulatory compliance risks.
  • Geopolitical fragmentation and sustainability disclosures heighten reputational scrutiny across global markets.

What changed since the prior 10-K

New

  • NewRISKS RELATING TO OUR BUSINESS AND THE FINANCIAL SERVICES INDUSTRY

    services could also interfere with our ability to comply with financial reporting and controls and other regulatory requirements, exposing us to regulatory action and liability to our clients, potentially resulting in financial losses that may not be sufficiently mitigated by insurance coverage

    Integrating generative AI and new technologies across global systems requires significant capital expenditures and failure to upgrade risks client loss and non-compliance.

  • NewRISKS RELATING TO OUR BUSINESS AND THE FINANCIAL SERVICES INDUSTRY

    and scope of new rules, regulations, executive orders, directives, policies and legal interpretations has increased both in the U.S. and globally, which requires additional resources and expense in order for us to digest and institute processes to comply

    Public communication regarding environmental, social, and human capital initiatives exposes us to criticism, litigation, and regulatory uncertainty from divergent government policies.

Dropped

  • DroppedRISKS RELATING TO OUR BUSINESS AND THE FINANCIAL SERVICES INDUSTRY

    taking profits from their investments; portfolio risk characteristics, which could cause investors to move assets to other investment managers; and investor and market sentiments

  • DroppedRISKS RELATING TO OUR BUSINESS AND THE FINANCIAL SERVICES INDUSTRY

    events on global financial markets and our clients’ investment decisions could adversely affect our revenue and operating results

    Capacity constraints in certain investment strategies resulting from strong inflows.

  • DroppedRISKS RELATING TO OUR BUSINESS AND THE FINANCIAL SERVICES INDUSTRY

    Our financial condition and liquidity would be adversely affected by losses on our seed capital and co-investments

  • DroppedRISKS RELATING TO OUR BUSINESS AND THE FINANCIAL SERVICES INDUSTRY

    could impose significant limitations on our operations, require changes to our business, or restrict our collection, use or storage of data or related technologies, which may increase our compliance expenses and make our business more costly or less efficient to conduct

Reworded

  • 86% rewrittenRISKS RELATING TO OUR BUSINESS AND THE FINANCIAL SERVICES INDUSTRY

    Compliance within a complex regulatory and legal environment which continues to evolve imposes significant financial and strategic costs on our business, and non-compliance could result in fines and penalties

    Removed specific references to ESG and DEI initiatives from the discussion of complex global regulatory compliance costs.

  • 71% rewrittenRISKS RELATING TO OUR BUSINESS AND THE FINANCIAL SERVICES INDUSTRY

    Our revenues are based on the market value and composition of the assets under our management, all of which are subject to fluctuation caused by factors outside of our control

    Updated revenue dependence factors to refer specifically to investment products instead of investment portfolios.

  • 63% rewrittenRISKS RELATING TO OUR BUSINESS AND THE FINANCIAL SERVICES INDUSTRY

    Legal and regulatory developments in the mutual fund, retirement and investment advisory industry could increase our regulatory burden, impose significant financial and strategic costs on our business, and cause a loss of, or impact the servicing of, our clients and product shareholders

    Added specific regulatory proposals covering cybersecurity disclosures, sustainability, privacy, digital assets, and tax compliance.

    Was: Legal and regulatory developments in the mutual fund, retirement and investment advisory industry could increase our regulatory burden, impose significant financial and strategic costs on our business, and cause a loss of, or impact the servicing of, our clients and fund shareholders

  • 52% rewrittenRISKS RELATING TO OUR BUSINESS AND THE FINANCIAL SERVICES INDUSTRY

    Our business, financial condition, and results of operation may be adversely affected by pandemics, epidemics or disease outbreaks

    Removed the specific historical example referencing the adverse effects of the coronavirus pandemic.

  • 51% rewrittenRISKS RELATING TO OUR BUSINESS AND THE FINANCIAL SERVICES INDUSTRY

    Any damage to our reputation could harm our business and lead to a loss of revenues and net income or access to capital

    Added risks of heightened scrutiny from global investments in a fragmented geopolitical landscape and personnel misconduct.

  • 49% rewrittenRISKS RELATING TO OUR BUSINESS AND THE FINANCIAL SERVICES INDUSTRY

    Our hedging strategies utilized to mitigate risk may not be effective, which could impact our net income

    Updated hedging strategy disclosures to specify deferred compensation plans and net income impacts.

    Was: Our hedging strategies utilized to mitigate risk may not be effective, which could impact our earnings

  • 48% rewrittenRISKS RELATING TO OUR BUSINESS AND THE FINANCIAL SERVICES INDUSTRY

    We require significant quantities and types of technology to operate our business and would be adversely affected if we or our third party providers fail to maintain adequate, resilient and secure technology to conduct or expand our operations or if our technology became inoperative or obsolete

    Added the specific disclosure that all technology systems and third-party providers are not fully redundant.

    Was: We require significant quantities and types of technology to operate our business and would be adversely affected if we or our third party providers fail to maintain adequate and secure technology to conduct or expand our operations or if our technology became inoperative or obsolete

  • 35% rewrittenRISKS RELATING TO OUR BUSINESS AND THE FINANCIAL SERVICES INDUSTRY

    We may review and pursue strategic transactions in order to maintain or enhance our competitive position and these could pose risks

    Replaced joint ventures with partnerships in the list of considered strategic opportunities and transactions.

  • 34% rewrittenRISKS RELATING TO OUR BUSINESS AND THE FINANCIAL SERVICES INDUSTRY

    A majority of our revenues are based on contracts with commingled vehicles that are subject to termination without cause and on short notice

    Was: A majority of our revenues are based on contracts with collective investment funds that are subject to termination without cause and on short notice

  • 29% rewrittenRISKS RELATING TO OUR BUSINESS AND THE FINANCIAL SERVICES INDUSTRY

    We are exposed to risks arising from our international operations

  • 24% rewrittenRISKS RELATING TO OUR BUSINESS AND THE FINANCIAL SERVICES INDUSTRY

    Our alternatives products include investments in private credit, real estate, infrastructure and private companies, which may expose us to new or increased risks and liabilities and to reputational harm

    Was: Our alternatives products include investments in private credit, real estate, and equity investments in private companies, which may expose us to new or increased risks and liabilities and to reputational harm

  • 23% rewrittenRISKS RELATING TO OUR BUSINESS AND THE FINANCIAL SERVICES INDUSTRY

    The recent advancements in and increased use of artificial intelligence (AI) present risks and challenges that may adversely impact our business

  • 23% rewrittenRISKS RELATING TO OUR BUSINESS AND THE FINANCIAL SERVICES INDUSTRY

    A cyberattack or a failure to implement effective information and cybersecurity policies, procedures and capabilities could disrupt operations and cause financial losses

  • 22% rewrittenRISKS RELATING TO OUR BUSINESS AND THE FINANCIAL SERVICES INDUSTRY

    Changes in tax laws or exposure to additional tax liabilities may impact our financial position or the marketability of the products and services we offer our clients

All 35 risk factors

Headings as the filing states them, in filing order.

RISKS RELATING TO OUR BUSINESS AND THE FINANCIAL SERVICES INDUSTRY

  1. 01Our revenues are based on the market value and composition of the assets under our management, all of which are subject to fluctuation caused by factors outside of our control71% rewritten
  2. 02A majority of our revenues are based on contracts with commingled vehicles that are subject to termination without cause and on short notice34% rewritten
  3. 03We operate in an intensely competitive industry. Competitive pressures may result in a loss of clients and their assets or compel us to reduce the fees we charge to clients, thereby reducing our revenues and net income
  4. 04As part of our continued efforts to attract and retain clients, we develop and launch new products and services, which may require expenditure of resources and may expose us to new regulatory or compliance requirements as well as increased risk of operational or client service errors
  5. 05The failure or negative performance of products offered by competitors may cause our products, which are similar, to be impacted irrespective of our performance
  6. 06Our operations are complex and a failure to properly execute operational processes could have an adverse effect on our reputation and decrease our revenues
  7. 07The quantitative models we use may contain errors, which could result in financial losses or adversely impact product performance and client relationships
  8. 08Any damage to our reputation could harm our business and lead to a loss of revenues and net income or access to capital51% rewritten
  9. 09Failure to comply with client contractual requirements and/or investment guidelines could result in costs of correction, damage awards or regulatory fines and penalties against us and loss of revenues due to client terminations
  10. 10Our alternatives products include investments in private credit, real estate, infrastructure and private companies, which may expose us to new or increased risks and liabilities and to reputational harm24% rewritten
  11. 11Our expenses are subject to significant fluctuations that could materially decrease net income
  12. 12Our hedging strategies utilized to mitigate risk may not be effective, which could impact our net income49% rewritten
  13. 13Changes in tax laws or exposure to additional tax liabilities may impact our financial position or the marketability of the products and services we offer our clients22% rewritten
  14. 14Examinations and audits by tax authorities could result in additional tax payments for prior periods, which could impact our financial results
  15. 15We have contracted with third-party financial intermediaries that distribute our investment products and such relationships may not be available or profitable to us in the future
  16. 16Natural disasters and other unpredictable events could adversely affect our operations and financial results
  17. 17Our business, financial condition, and results of operation may be adversely affected by pandemics, epidemics or disease outbreaks52% rewritten
  18. 18The soundness of other financial services institutions could adversely affect us or the client portfolios we manage
  19. 19We may review and pursue strategic transactions in order to maintain or enhance our competitive position and these could pose risks35% rewritten
  20. 20Climate change-related risks could adversely affect our business, products, operations and clients, which may cause our AUM, revenues and earnings to decline
  21. 21We are exposed to risks arising from our international operations29% rewritten
  22. 22Separately from the investments we manage for our clients, we currently have a substantial investment portfolio
  23. 23Our success depends on our key personnel and our investment performance and financial results could be negatively affected by the loss of their services
  24. 24We require significant quantities and types of technology to operate our business and would be adversely affected if we or our third party providers fail to maintain adequate, resilient and secure technology to conduct or expand our operations or if our technology became inoperative or obsolete48% rewritten
  25. 25services could also interfere with our ability to comply with financial reporting and controls and other regulatory requirements, exposing us to regulatory action and liability to our clients, potentially resulting in financial losses that may not be sufficiently mitigated by insurance coverageNew
  26. 26A cyberattack or a failure to implement effective information and cybersecurity policies, procedures and capabilities could disrupt operations and cause financial losses23% rewritten
  27. 27We could be subject to losses if we fail to properly safeguard and maintain confidential data or our intellectual property
  28. 28The recent advancements in and increased use of artificial intelligence (AI) present risks and challenges that may adversely impact our business23% rewritten
  29. 29Compliance within a complex regulatory and legal environment which continues to evolve imposes significant financial and strategic costs on our business, and non-compliance could result in fines and penalties86% rewritten
  30. 30and scope of new rules, regulations, executive orders, directives, policies and legal interpretations has increased both in the U.S. and globally, which requires additional resources and expense in order for us to digest and institute processes to complyNew
  31. 31Legal and regulatory developments in the mutual fund, retirement and investment advisory industry could increase our regulatory burden, impose significant financial and strategic costs on our business, and cause a loss of, or impact the servicing of, our clients and product shareholders63% rewritten
  32. 32We may become involved in legal and regulatory proceedings that may not be covered by insurance
  33. 33Net capital requirements may impede the business operations of our subsidiaries
  34. 34We may be impacted adversely by claims or litigation, including claims or litigation relating to our fiduciary responsibilities
  35. 35We may be adversely affected by increased governmental and regulatory scrutiny or negative publicity

Other Price T Rowe Group 10-Ks

  • FY2024 10-K risk factors
    37 risks

    Asset management revenues depend heavily on market values and asset composition fluctuations. Intense industry competition creates fee pressure and client asset loss risks. Strict global regulations and complex compliance requirements impose significant financial and operational costs.

    Filed Feb 14, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.